China experienced a slowdown in export growth during September, reflecting a cooling global consumer demand, while imports rebounded, signaling improved economic conditions within the country.
Official data released on Monday revealed that China’s exports increased by 5.7% compared to the same period last year, reaching $322.8 billion. This growth, however, was lower than the 7% recorded in August. On the other hand, imports rose by 0.3% to $238 billion, recovering from a 0.2% contraction in the previous month.
Economists had anticipated a weakening of Chinese exports in the latter half of 2022, driven by actions taken by the Federal Reserve and central banks in Europe and Asia. These institutions had raised interest rates to combat inflation, which had reached multi-decade highs and dampened consumer demand. China’s global trade surplus expanded by 26.9% compared to the same period last year, reaching $84.7 billion. Imports from Russia, primarily comprising oil and gas, saw a 55% increase from the previous year, totaling $10.7 billion, albeit a 5% decrease from August.
It’s worth noting that China’s purchase of Russian energy has continued despite Western sanctions aimed at penalizing Moscow for its invasion of Ukraine. These purchases have raised concerns in Washington, as they have indirectly contributed to President Vladimir Putin’s revenue from oil and gas exports.
In September, exports to the United States declined by 11.6% year-on-year, amounting to $50.8 billion, while imports of American goods fell by 4.6% to $14.7 billion. Consequently, the trade surplus between the two nations, which has been politically contentious, contracted by 14.1% year-on-year, standing at $36.1 billion.
It is important to note that face-to-face negotiations to resolve the trade dispute between Washington and Beijing have not resumed since President Joe Biden took office in January 2021. Additionally, President Xi Jinping’s recent reappointment as Communist Party leader suggests continuity in China’s leadership, which could impact future trade dynamics.
On the European front, exports to the 27-nation European Union plummeted by 23.9% to $47 billion, while imports of European goods saw a sharp drop of 40.9%, amounting to $23.8 billion. Despite these fluctuations, China’s trade surplus with the EU expanded by 8% compared to the same period last year, reaching $23.2 billion.
